The Toccoa Power Company, a subsidiary of the Tennessee Electric Power Company constructed the lake and dam over a five year period starting in 1925. The TVA bought the dam and generating plant on August 15, 1939. At this time the TVA acquired 7,076 acres of land around the lake and transferred 4,073 acres to the U.S. Forestry Service.

The purpose in building the lakes and dams, were to control the serious problem of mountain floods. Controlling the water flow not only offered a safe alternative, creating hydro dams could generate the much needed demand for electricity. Safety and modern convenience were the original purpose for creating the lakes. Later, the recreational benefits of a mountain lake would draw the attention of a commerce that had all but disappeared, "vacationers."

Boating, fishing and other watersports bring a steady flow of seasonal visitors to the 3,290 acre lake with over 100 miles of Lake Blue Ridge shoreline. Summer homes, as well as year-round residences occupy some of the Lake Blue Ridge shores. There are several boat ramps, a public swimming and picnic areas. Blue Ridge reservoir is 11 miles long and has 65 miles of shoreline, 25 percent of which is developed, 80 percent of the shoreline on Lake Blue Ridge is in the Chattahoochee National Forest, managed by the USDA Forest Service.

Forest service recreation areas include the Lake Blue Ridge Campground, off Aska Road in Blue Ridge, which has 90 campsites, a picnic area, boat ramp and loop trail along the lake shore. Morganton Point Campground, in Morganton, features a public swimming area, along with 43 campsites, picnic tables and pavilion and a boat ramp. Another boat ramp is available at Lakewood Landing near Morganton.